Dublin, March 24, 2023 (GLOBE NEWSWIRE) — The “Global Automotive IoT Market by Offering (Hardware, Software, Services), Connectivity Form Factor (Embedded, Tethered, Integrated), Communication Type, Application (Navigation, Telematics, Infotainment) and Region – Forecast to 2028” report has been added to ResearchAndMarkets.com’s offering.
The global automotive IoT market is projected to grow from USD 131.2 billion in 2023 and is projected to reach USD 322 billion by 2028; it is expected to grow at a CAGR of 19.7% from 2023 to 2028.
Increasing adoption of connected vehicle technology for reducing fuel wastage along with rising adoption of electric and hybrid vehicles to reduce CO2 emissions is expected to fuel the growth of the automotive IoT market. However, lack of infrastructure for proper functioning of connected vehicles is limiting the growth of the automotive IoT market.
Services segment of the automotive IoT market to witness highest growth during the forecast period
By offering, the automotive IoT market has been segmented into hardware, software, and services. The services segment is expected to grow at the highest CAGR during the forecast period. Deployment and integration, consulting, and support & maintenance are the major services contributing to the growth of the automotive IoT market for services. Growth in automotive IoT retrofit market is the major driver for the services market as vehicle owners looking to have a connected car require suitable solutions.
Market for embedded systems segment is expected to account for largest share during the forecast period
The market for embedded systems segment is expected to account for largest share of the automotive IoT market during the forecast period. Increase in demand for the best consumer experience is met by upgrade of infotainment systems in vehicles connected to the Internet and with cloud facility. For automotive IoT applications like infotainment, embedded connectivity results in avoidance of incompatibility, interoperability, or tethering issues, resulting in good communication performance.
The growth of embedded automotive IoT solutions in the long term can be attributed to various disruptive factors such as government mandates, cost optimization of service plans, and increase in cloud-based services. Moreover, the adoption of 5G technology, which provides high-speed connectivity, will shift the inclination of manufacturers and buyers toward embedded automotive IoT solutions.
Market for infotainment application is expected to significant share of the automotive IoT market during the forecast period
The infotainment application is expected to hold the second-largest market share by 2028. The rising demand for advanced safety features, self-driving vehicles, digital cockpits for driver assistance, and entertainment purposes is driving the growth of the automotive IoT infotainment market. Furthermore, changing consumer preferences toward technologically advanced products is contributing to the growth of the overall market growth.
Rapidly growing consumer focus on entertainment while driving, coupled with high demand for car customization backed by high per capita income, is likely to contribute to the growth of infotainment application segment. The introduction of cloud-based services for music and other multimedia support has led to an increase in infotainment applications in vehicles. Users look for multimedia support and smart apps for device integration, high-speed connectivity, intuitive and multi-modal user interfaces in the systems installed in vehicles. Internet radio, music streaming music, and running social networking apps are commonly available services.
Europe to hold a significant share of the automotive IoT market during the forecast period
Europe is expected to hold a significantly large share for automotive IoT market during the forecast period. The countries that constitute a major portion of the automotive IoT market in Europe include the Germany, UK, France. Europe is home to many major automobile companies, where the automotive industry is one of the key contributors to the economy. There is a drift from conventional driver assistance systems to advanced connected systems to meet the stringent vehicle safety norms. This is expected to positively impact the demand for passenger cars with telematics solutions in the future.
The market growth in the region can be attributed to mandatory regulations in the EU to use certain telematics services such as eCall (since 2018 in all passenger cars). These advanced technologies help in improving safety and minimizing the risks of collisions and hazardous situations. The market in Europe presents a big opportunity for infotainment and navigation applications. Therefore, the demand for automotive IoT with minimal telematics applications is likely to drive the market in this region.
Another key driver for the automotive IoT market in Europe is the eCall mandate, which necessitates all new cars to be fitted with a mandatory sensor that calls emergency services in case of an accident The report profiles key players in the automotive IoT market with their respective market ranking analysis.
- Increasing Number of Regulations Mandating Advanced Features in Vehicles for Enhanced User Comfort, Safety, and Convenience
- Growing Use of Telematics and User-based Insurance Programs
- Increasing Adoption of Connected Vehicle Technology to Reduce Fuel Wastage
- Rising Adoption of Electric and Hybrid Vehicles to Reduce Co2 Emissions
- Lack of Infrastructure for Proper Functioning of Connected Vehicles
- Additional Cost Burden on Consumers
- Emergence of Technologies such as 5G and AI
- Ongoing Technological Developments in Autonomous Vehicles
- Integration of Predictive Maintenance Platform with Vehicles
- Threats Associated with Cybersecurity
|No. of Pages
|2023 – 2028
|Estimated Market Value (USD) in 2023
|Forecasted Market Value (USD) by 2028
|Compound Annual Growth Rate
Key Topics Covered:
2 Research Methodology
3 Executive Summary
4 Premium Insights
5 Market Overview
6 Automotive IoT Market, by Offering
6.2.1 Semiconductor Components
6.2.2 Connectivity Technology ICs
188.8.131.52 Device Management Platform
184.108.40.206 Application Management Platform
220.127.116.11 Network Management Platform
18.104.22.168 Real-Time Streaming Analytics
22.214.171.124 Security Solutions
126.96.36.199 Data Management
188.8.131.52 Remote Monitoring Systems
184.108.40.206 Network Bandwidth Management
6.4.1 Deployment & Integration Services
6.4.2 Support & Maintenance Services
7 Automotive IoT Market, by Connectivity Form Factor
8 Automotive IoT Market, Communication Type
8.2 In-Vehicle Communication
8.3 Vehicle-To-Vehicle Communication
8.4 Vehicle-To-Infrastructure Communication
9 Automotive IoT Market, by Application
10 Automotive IoT Market, by Region
11 Competitive Landscape
12 Company Profiles
- Alphabet Inc.
- Aptiv PLC
- Bara Posten AB
- Bright Box
- Desay SV Automotive
- Geotab Inc.
- Hella Aglaia
- Honda Motors Incorporated
- Huawei Technologies
- Hyundai Motor Group (HMG)
- Infineon Technologies
- Intel Corporation
- Jio India
- Kent Central Ambulance Service
- Lojack Italia
- MG Motor
- Micron Technology
- Microsoft Corporation
- Mitsubishi Electric Corp.
- NXP Semiconductors
- PTV Group
- Robert Bosch GmbH
- Sierra Wireless
- Sigfox Network
- Tamil Nadu State Transport Corporation
- Tata Motors Connected Vehicles
- Tech Mahindra
- Telefonica Mexico
- Telefonica Espana
- Texas Instruments Inc.
- TomTom International
- Toyota Motor Corporation Australia
- Verizon Communication
- Vodafone Group
- Volvo UK
- Wabco Holdings Inc.
For more information about this report visit https://www.researchandmarkets.com/r/fqvs
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